Korea's sixth-largest conglomerate POSCO is to sell off three of its subsidiaries. It wants to sell its department stores and shopping malls in the first instance of entire subsidiaries being flogged amid the current recession.
Industry watchers believe the asset sale signals the start of drastic restructuring in major conglomerates.
A supply glut in the global steel industry has exacerbated POSCO's woes, with global uncertainties compounding problems.
POSCO's third-quarter operating profit shrank 25 percent compared to the same period a year ago. Last week, Moody's lowered POSCO's credit rating by one notch from A3 to Baa1 due to its worsening financial health.
POSCO frantically boosted the number of subsidiaries under its belt since the mid-2000s and has been criticized for losing focus on its mainstay steelmaking business.